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Author: RoadScholar5 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121180  
Subject: 1040A vs. 1040 ~ 2011 Date: 12/10/2012 12:04 PM
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My very young daughter and her equally young husband, had their 2011 taxes filed by H&R Block.

H&R Block filed for them, using form 1040A.

My daughter now realizes she likely could have deducted significant work-related expenses for 2011.

She worked for a caterer and delived food over long distances for much of 2011 and was not reimbursed by her employer for mileage expenses on her personal automobile.

It's been way too long since I have dealt with the 1040A form, but my guess is that if she were to amend her 2011 taxes, she would also have to switch to a 1040?....

Thank you, RS
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117095 of 121180
Subject: Re: 1040A vs. 1040 ~ 2011 Date: 12/10/2012 12:10 PM
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It's been way too long since I have dealt with the 1040A form, but my guess is that if she were to amend her 2011 taxes, she would also have to switch to a 1040?

Yes, but that's not the real issue here, which is that she would have to itemize deductions on Schedule A to deduct employee business expenses, which are a miscellaneous itemized deduction, and the total of those deductions gets a 2% of AGI haircut.

Probably not worth it, but run the numbers to be sure.

Phil
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Author: RoadScholar5 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117114 of 121180
Subject: Re: 1040A vs. 1040 ~ 2011 Date: 12/11/2012 12:30 PM
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Thanks. Ok, the numbers show that they did not take approx. $2K worth of eligible expenses on a gross income of $25K.

Now, I need to find a Pub(suggestions?) that guides me on amending from one form to another.

Further, I need to find guidance on whether this will impact their Earned Income credit, etc.

I really wish I could pawn this job off on the H&R guy who charged them $400 and never asked the question in the first place.

Maybe TurboTax can guide me?

Thanks again, RS

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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117115 of 121180
Subject: Re: 1040A vs. 1040 ~ 2011 Date: 12/11/2012 12:50 PM
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Thanks. Ok, the numbers show that they did not take approx. $2K worth of eligible expenses on a gross income of $25K.

Now, I need to find a Pub(suggestions?) that guides me on amending from one form to another.


Isn't the $2K a Schedule A deduction? $2K is less than the standard deduction. Unless they have sufficient other deductions, it isn't going to make a difference in their income taxes.

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117118 of 121180
Subject: Re: 1040A vs. 1040 ~ 2011 Date: 12/11/2012 4:07 PM
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I need to find a Pub(suggestions?) that guides me on amending from one form to another.

First you need to go back and digest the response, including the part about Schedule A. I seriously doubt that you'll find it's to their advantage to itemize rather than take the standard deduction. They cannot take the employee business expenses plus the standard deduction.

If it actually does pay to itemize and amend you'll need Form 1040X and its separate instructions.

Phil
Rule Your Retirement Home Fool

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Author: RoadScholar5 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117119 of 121180
Subject: Re: 1040A vs. 1040 ~ 2011 Date: 12/12/2012 8:06 AM
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Thank you. I had forgotten about the implications of the standard deduction.


RS

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